The Moderating Effects of Network Centrality between IT Initiatives and Firm Performance: An Empirical Study

Yucong Liu


The IS research community has accumulated a critical
mass of studies on IT business value, but the questions of how
and why IT creates business values remain understudied. In this
study, we focus on the role of network centrality and conjecture
that network centrality moderates the effects of IT initiatives on
firm performance. We collected data of 26 public companies
cross 19 industries over a period of 1994-2008 (15 years) and
conducted a multiple-level analysis. The results of data analysis
show that IT initiatives are significantly, positively related to firm
performance only in the high network centrality situation.


IT business value; network Centrality; IT initiatives; firm performance

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Johnson Controls Inc


Bristol-Myers Squibb Co, Merck & Co Inc, Eli Lilly & Co, Pfizer Inc

Sigma-Aldrich Corp

Dell Inc

EMC Corp

Pitney Bowes Inc

Harris Corp, QUALCOMM Inc

Advanced Micro Devices Inc

Lockheed Martin Corp

Raytheon Co

Hasbro Inc

Comcast Corp

Tech Data Corp

Ingram Micro Inc

American Express Co

Yahoo! Inc

Autodesk Inc, Electronic Arts Inc

McAfee Inc

Unisys Corp

Acxiom Corp


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